Should I Buy Life Insurance for My Child?

Should I Buy Life Insurance for My Child?

For parents, the question often arises should I buy life Insurance for my child? Child insurance protects your beloved son or daughter’s financial future.


Many insurers sell whole-life policies tailored specifically for children that include death benefits and savings components. These policies tend to offer lower premium rates than similar offerings for adults. Child policies typically offer coverage amounts up to $50,000; this may not provide sufficient protection once your child becomes an adult and starts their own family.


No parent wants to consider the possibility of their child passing, but it’s wise to do so. Funeral costs, lost income, and other unexpected expenses could be devastatingly burdensome on a family if something were to happen and life insurance may help alleviate some of those burdens.

Purchase of a policy for your child allows you to lock in a low, fixed premium while they’re young and healthy, as well as potentially convert them to adult coverage without needing medical exams and at a cost based on age and health. Children’s policies may also offer a cash benefit that can be accessed for future financial needs, making permanent whole-life policies an excellent way to teach children the value of saving and provide a secure base.

However, it’s important to keep in mind that other financial vehicles may offer similar savings potential such as high-interest savings accounts and 529 college savings plans. Before making any major financial decisions on behalf of your child’s future, speak with a Western & Southern life insurance expert in order to assess if purchasing life insurance makes sense given your unique goals and circumstances.


Children’s life insurance works much like regular policies in that it offers a death benefit in exchange for premium payments, but you should carefully consider its costs against other financial goals for your child’s future such as saving for education or retirement savings.

Children can purchase permanent whole-life policies with fixed premiums that remain unchanged throughout their lives, building cash value over time to provide an asset for financial planning or investments, according to Meldrum. This gives children a solid financial foundation on which they can start businesses or take risks with investments.

Whole-life policies provide guaranteed insurability for their children as adults meaning they will be eligible to obtain coverage without needing a medical exam providing parents with added peace of mind should their child develop chronic health conditions or choose an unsafe career. Furthermore, this coverage option may even be available when purchasing term life policies but not otherwise.


Life insurance policies provide financial security to their loved ones after death. Some also cover children through this policy.

Life insurance policies designed for children typically consist of whole-life policies with coverage lasting as long as the policy remains active. Furthermore, children’s policies typically feature lower premiums than policies for adults.

Whole life policies can accumulate cash value that can help pay for college tuition or other expenses as the child ages, though their cash value usually provides much lower returns than alternatives such as savings accounts or investments.

Parents must carefully evaluate their needs and goals before purchasing life insurance for their children. In general, it’s wiser to address your own financial needs first by building an emergency fund, investing for retirement, and paying down high-interest debt – this may free up funds that could then be used for purchasing child life insurance policies if desired; providing peace of mind to parents, grandparents or legal guardians as well as guaranteeing that any developing health issues won’t make buying traditional term life policies cost prohibitive for adult coverage later on.

Should I Buy Life Insurance for My Child?Benefits of Child Life Insurance Policy


Though no one wishes for their child’s death to occur unexpectedly, it could leave you with significant expenses. A life insurance policy provides death benefits and financial security if this unfortunate event should arise helping cover final expenses without debt or crowdfunding platforms like GoFundMe. Furthermore, children’s policies often come equipped with guaranteed future insurability features, enabling your child to purchase additional coverage without going through a medical exam if they develop serious health issues or pursue hazardous occupations in future years.

Before purchasing life insurance for a child, it’s essential that you improve your own financial situation first. If other priorities such as saving for retirement or paying off high-interest debt are more pressing than finding a life policy for them. Furthermore, permanent policies with cash value build-up could end up costing more in premiums than any benefit payments to your family in such an instance it may not be the ideal policy.

Common Misconceptions

Parents often purchase life insurance for their children for legitimate reasons to protect future insurability, cover final expenses, or teach financial responsibility. However, it is essential to carefully consider all of the potential pros and cons before making a decision about a child’s life insurance coverage.

A key consideration when purchasing child life insurance policies is future insurability. By having one in place now, having coverage can protect against being denied due to developing medical issues like diabetes in the future. Plus, some policies offer cash value components that can build over time.

However, many experts advise against purchasing life insurance as an investment vehicle as it often offers low returns and is taxed similarly to other forms of savings. Instead, experts suggest investing in low-cost exchange-traded funds as they provide greater investment returns at less risk.



Child life insurance offers certain benefits but also requires a thorough understanding of its purpose, types, and considerations. While it can provide financial security, it’s essential to dispel common misconceptions and make an informed decision. Remember, the choice should always align with your child’s best interests.

Learn More

For more information about life insurance, see the following guides:


Is it normal to have a life insurance policy on your child?

Yes, it’s not uncommon for parents or grandparents to purchase life insurance policies for their children or grandchildren. These policies can provide financial security and also build a cash value over time.

What is the best age to start life insurance?

The best age to start life insurance is generally when you’re young and healthy. Many financial experts recommend purchasing life insurance before the age of 35. However, the specific timing can vary depending on individual circumstances.

What is the best life insurance for a child?

The best life insurance for a child can vary based on individual needs and circumstances. Some popular choices include Mutual of Omaha, Globe Life, and Foresters Financial. It’s important to consider factors like coverage, premiums, and the company’s reputation when choosing a policy.

What age buys the most life insurance?

The most common age group for people to buy life insurance is between 35 and 45. This is typically when individuals have significant financial responsibilities and dependents, making life insurance a crucial part of their financial planning.

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